Lawyers Professional Liability Insurance Program
The Hartford
Examples of Lawyers Errors & Omissions Claims

These claim scenarios illustrate why Professional Liability Insurance is so important for law firms:

Scenario A: Missed Statute of Limitations

An attorney represented a client who had been injured in an automobile accident. The attorney failed to timely file a complaint prior to the expiration of the statute of limitations. The client filed suit for failing to timely file the complaint. The case settled for approximately $75,000.

Scenario B: Attorney Acting as Local Counsel

An attorney was engaged to act as local counsel for the plaintiffs in a wrongful death action. The lead attorneys mishandled the case, and the attorney acting as local counsel failed to notify the plaintiffs of what was happening. This resulted in the plaintiffs’ case being lost. The legal malpractice case against the attorneys settled for nearly $1.5 million.

Scenario C: Conflict of Interest

An attorney represented the buyers and sellers of a company, as well as the company itself. The company and the buyers brought a malpractice action against the attorney for improperly drafting an employment/non-compete agreement with the sellers, and for failing to obtain written conflict waivers. The case settled for $150,000.

Scenario D: Late Filed Estate Tax Return

An attorney was hired to probate the estate of a decedent and to prepare any necessary income and estate tax returns that were required to be filed. The insured failed to determine that estate and income tax returns needed to be filed. This resulted in the returns being filed late, and subjected the executor of the estate to substantial interest and penalties by the Internal Revenue Service. The attorney was sued for legal malpractice. The case settled for a payment of nearly $250,000 to the executor and legal expenses of approximately $50,000.

Claims examples are for descriptive purposes only. Please refer to the actual policy for exact coverage descriptions, terms and limits; exclusions and deductibles may apply. It is impossible to state in the abstract whether a policy would provide coverage in any given situation.

Insurance for Particular Professionals

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